Fen Furnishingsproduces brass handles for the furniture industry in a four-stage process–Mixing,Moulding, Polishingand Packaging. Costs incurred in thePolishingDepartment during January are summarized as follows: January 1 Bal.Transfer from Moulding 20000 units $1,310,000 Direct Materials Added $391,600 Direct Labour $ 638,000 Manufacturing Overhead $307,400 Normal losses are estimated to be 2½% of input during theperiod. Inspection takes place duringthe processing operation, at which point damagedhandles are separated from good handles and sold as scrapto local furniture manufacturers at $85each. At inspection, 2,000 handleswere rejected as scrap. These units had reached the following degree of completion: Transfer from Moulding 100% Direct material added 40% Conversion costs 20% Work-in-progress at the end of January was 4,000 handles and had reached the following degree of completion: Transferfrom Moulding 100% Direct material added 80% Conversion costs 50% Direct materials added and conversion costs are incurred uniformlythroughout the process. Required: (A) Compute the equivalent units and cost per equivalent units for direct materials(From Moulding& Direct materials added)and conversion costs. (B)Compute the: cost of the unexpected losses total cost of the handles completed and transferred out of the Packaging Department cost of ending work in process inventory in thePolishing Department (C)Completethe Work in Process Inventory –Polishing ProcessT-account, clearly showingthe ending balance.
Critical Path Method
The critical path is the longest succession of tasks that has to be successfully completed to conclude a project entirely. The tasks involved in the sequence are called critical activities, as any task getting delayed will result in the whole project getting delayed. To determine the time duration of a project, the critical path has to be identified. The critical path method or CPM is used by project managers to evaluate the least amount of time required to finish each task with the least amount of delay.
Cost Analysis
The entire idea of cost of production or definition of production cost is applied corresponding or we can say that it is related to investment or money cost. Money cost or investment refers to any money expenditure which the firm or supplier or producer undertakes in purchasing or hiring factor of production or factor services.
Inventory Management
Inventory management is the process or system of handling all the goods that an organization owns. In simpler terms, inventory management deals with how a company orders, stores, and uses its goods.
Project Management
Project Management is all about management and optimum utilization of the resources in the best possible manner to develop the software as per the requirement of the client. Here the Project refers to the development of software to meet the end objective of the client by providing the required product or service within a specified Period of time and ensuring high quality. This can be done by managing all the available resources. In short, it can be defined as an application of knowledge, skills, tools, and techniques to meet the objective of the Project. It is the duty of a Project Manager to achieve the objective of the Project as per the specifications given by the client.
Fen Furnishingsproduces brass handles for the furniture industry in a four-stage process–Mixing,Moulding, Polishingand Packaging. Costs incurred in thePolishingDepartment during January are summarized as follows:
January 1 Bal.Transfer from Moulding 20000 units $1,310,000
Direct Materials Added $391,600
Direct Labour $ 638,000
Manufacturing Overhead $307,400
Normal losses are estimated to be 2½% of input during theperiod. Inspection takes place duringthe processing operation, at which point damagedhandles are separated from good handles and sold as scrapto local furniture manufacturers at $85each.
At inspection, 2,000 handleswere rejected as scrap. These units had reached the following degree of completion:
Transfer from Moulding 100%
Direct material added 40%
Conversion costs 20%
Work-in-progress at the end of January was 4,000 handles and had reached the following degree of completion:
Transferfrom Moulding 100%
Direct material added 80%
Conversion costs 50%
Direct materials added and conversion costs are incurred uniformlythroughout the process.
Required:
(A) Compute the equivalent units and cost per equivalent units for direct materials(From Moulding& Direct materials added)and conversion costs.
(B)Compute the:
- cost of the unexpected losses
- total cost of the handles completed and transferred out of the Packaging Department
- cost of ending work in process inventory in thePolishing Department
(C)Completethe Work in Process Inventory –Polishing ProcessT-account, clearly showingthe ending balance.
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